economy is in creating them. the policy seems to be benefiting superrich rather than our vanishing middle class. that is it tonight for he willis report." thank you for joining us and have a great weekend. lou: thank you for being with us. good evening, everybody. president obama is repairing for a rare trip to capitol hill there he will usher senate democrats out of town for the recess. but it is becoming clear that this president needs a vacation th is still 10 days away. president obama headed to an amazon distribution center in chattanooga, tennessee. there he delivered a wide ange of peech on jobs, the economy, obamacare, just a little spin on the seestered in the keystone

pipeline. take a listen to this gem today from president obama. >> this same group has kept in place this meat cleaver called the seqester that is just splashing all kinds of important investments in education and research. if public-sector employees were like the last two sessions come in the unemployment would be 6.5% instead of 7.5%. our economy would be much better off. we are now as president obama using two hypotheticals, slamming the sequester and the incipient cause of all of our unemployment problems. he did notmention tt that is the very same seqstered inhis white house prposed. thsame sequester that he signed into law. ed henry will have more on the president's speech speech in moments. we will get into the reaction to those presidential style

hypotheticals as well.esidentiae hypotheticals as well. and the call for a grand bargain from senator roger wicker, member of the budget committee and others. also tonight we will be talking to the man at the center of the efforts to pass immigration reform in increments. the chairman of the house judiciary committee, congressman bob goodlatte is here to knock down some eports that he is ready to go along with the gang of eight immigration roposal. one of the leaders from the federal reserve speaks about whether he hears about further regulation of the housing and financial industries.

>> this bumping an employee at the giant amazon fulfillment center, president obama claims that he had a new grand bargain deal. offering to cut the corporate tax rate down to 20% in exchange for republicans accepting changes to depreciation rules or a one-ti fee for businesses who hold earnings overseas. new money the president could then use to spend more on stimulus programs. >> sometimes it seems like they

never miss an opportunity. reporter: grand bargain 2.0. leaving outentitlement cuts that have been included in the original version. in the longer ties corporate tax exchang to individual tax reform. a nonstarter for john boehner one small businesses o file individual returns to get in on the tax savings as wel. plus treasury secretary tim geithner unveiled a similar plan in february 2012. would you rather deal going to deficit reduction, saying that we can reduce distortion of economic growth, permitting us to lower corporate tax rates in a fiscally responsible way. though the president is now proposing to use new revenue from the changes for new spending on everything from community college training to infrastructure programs. >> it is just a further left version of a widely plannedand plan that he proposed two years

ago. this time with extra goodies for tax planning. reporter: many don' want to get on board now. it sounded like the man who is about to block approval of the keystone xl pipeline. >> they plan to create about 50 permanent jobs. those are not jobs plan. reporter: a lukewarm response happen. they went on to critcize what they called unrelated spending and bottom-line this has little chance of passage. lou: thank you very much.

the president sang the keystone would create 7500 jobs in august 50s. >> secretary john kerry wrapping up talks between negotiators in three years. secretary john kerry has largely been talking about the ever this morning. president obama stop by meeting with negotiators for just under a half hour. >> the preside's support for our efrts, including his personal engagement for the party thismorning has been essential. i thank him for them for that. we had a very positive meeting with the president and the vice president earlier this morning at the white house. lou: both sides setting the goal

of reaching the deal within the next nine months. joining us is senator roger wicker. member of the armed services committee. good to have you with us. you were not impressed by this grand bargain. >> no, it does sound like a rehash of the stimulus. we need corporate tax reform. even the president has acknowledged that needs to be revenue neutral. so here he comes today saying that we need to take the money and spend it and that is a nonstaer. i'm surprised that the president has moved off of the position on that. >> the suggestion that there would be a one-time opportunity,

money taken from corporate coffers in some fashion, that doesn't sound like something that would exte us. we know that it did not excite the business roundtable. but it dosn'tsound like it would excite many ceos either. >> that is tru. >> there also a lot of people that are not members of these business groups. a lot of them talk about the individual rate and we are interested in making our corporate tax more competitive. at the same time we have to get to taae care of the small businesses that actually create the jobs and are still paying this at a much higher tax rate. so there are two sides to that also. lou: there looks to be a significant trap. have 23 million people in this country are unemployed or underemployed and the president has already forgot that. let the republicans have an

opportunity to lead us on this issue. and aryou going to seize the opportunity and do so? >> well, here is how we are going to lead on the issue. the only savings we have had in the past two years have been the budget control act. we are making it very clear. we have made it clear in the commerce committee and we are not going to go over the overall budget numbers in the budget control acthe overall budget numbers in the budget control act. when we have the opportunity to make some progress on behalf of the american people is this sounding board for republicans who have been meeting with white house chief of staffon keeping these spending levels the same and having this is on autopilot to give it a little flexibility on the sequestration that we have. there is an opportunity there that the white house will work

with us on keeping overall spending the same. we can make pogress here at the end of the fiscal year and the connection with the debt ceiling through 31 president is saying no negotiation. he's not going to negotiate is just going to do what he tells you. i will point you think the white house will reach a level of maturity they are expected to negotiate. >> you know, i don't know what the president means what he says something like that. of course ere is negotiation going on. of course the congress has the power of the purse and as i just did it come the white house chief of staff has been trying

to negotiate something to give us relief from sequestration while tackling where the money really does and that is how this money has gone on autopilot. there are some things are nonnegotiable for senate repubcans in the house majority, which is republicans come and we are not going to preach these hard thoughts budget caps of the budget control act and our standpoint shows that we wt to make it clear to the american people are willing to negotiate with the overall budget level that we fought so hard for is actally inviolate in all these discussions to knock senator, we thank you for being with us. senator roger wicker. >> a new report says the white house discovering new ways to alter the behavior of some americans.

documents obtained sure the federal government a time when it calls behavioral insight. the goal is to influence people's behavior. like saving more for retirement. becoming more energy efficient. a similar teeger went to work in england and has been able to succeed for taxpayers to file on time. for more on this story, go to fox news.com. a fascinating story and we are going to take up with a number of our guests here tonight. >> attorney general eric holder has never heard the expression don't mess with texas. the supreme court has already ruled on voters rights. so why is the ag present?

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>>resident obama meeting behind closed doors today talking about the voting rights act. our next guest says this administration is starting to circumvent the recent decision of the united states supreme court. a move he considers hostile to the constitution and the state of texas. joining us now is the attorney general for the great state of texas. greg abbott. he is a candidate to succeed john cemented cement thank you for having me. lou: you must tremble that he

wi not be impressed with your credentials of the constitution ase has been so dismissive of his fellow attorneys and what the house and thsenate have said. >> well, this is purportedly for the purpose of enforcing the voting rights act. but in reality this is nothing more than political theater. look at the way that this legal challenge against texas would launch. it was launched at a national urban league convention. this follows in the footsteps of barack obama's nional field director coming to texas. this is nothing more than the obama administration trying to use the voting rights actfor political purposes. >> the president has talked about this issue contesting this state of texas.

i had to scratch my head. because with all the bluster of pandering on two different occasions, they were not paying attention to what you have done to them. you have beat them abo 10 to four and that is an average that would make any majr league cringe. ii just can't get over this. >> yes, instead of trying to prove it. >> i parking is reserved. one is walking down they give us two more victories against the obama administration. so really what we think they are doing we are defending these

challenge is. lou: the law that he put into effect is modeled on the indiana state law which has been supported y the u.s. supreme court. is that correct? >> you are absolutely correct. the united states supreme court said that it ought to be perfectly constitutional and it does not disenfranchis anyone. and texas passed a law modeled on the indiana law. but if democrats relly thnk that this is discrimindiscrimin atory,hy is it that they require a photo id in order to get into the democratic national convention? we think and id should be required for the most sacred

vote. because the united states department of justice says it's %-voter fraud to take place. we think the court should uphold it. >> you have other contests in court with this administration across a broad number of fronts. what is the next one to come to court? >> we always havsome that involve peta. and we are also challenging the dodd-fra law because we have seen the habit that he is wrecking on the financial industry. we are also weighing in chaenging the president's constitutional power. taing about his appointment to

the consumer financial protection bureau. the obama administration is challenging the constitution time after time. and they are pushing right back. lou: greg abbott, we are delighted to have you with us and we wish you success. thank you so much for being with us. lou: on that, senator mccain talks about the immigration debate. and the "chalk talk", we will ow you how that might be a little uncomfortable for t my mother made the best toffee in the world it's delicious. so now we' turned her toffee into a business. my goal was to take an idea and make it happen. i'm janet long d i formed my toffee company through legalzoom. never really thought i would make money doing what i love.

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lou: senator john mccain is making a lot of friends in the republican party. in this interview was a lot of rambling. there he slammed my colleagues at fox news. calling their coverage of the immigration legislation ebate

so let's take a look at it the senate. you are part of president obama's new best friends forever. just today. >> don'tget me wrong, you have earned the applause.

>> to joke it would be a tough choice is the candidates were senator rand paul and former secretary of state halaby clinton. would you like to switch parties now or wait a wild. back in march we might remind you that senator ted cruz was a wacko bird. it is almost as if you own the term. for pete sake, the most notable work in the sene is you could y y are mccain feingold. mccain lieberman. who knows? that we know will be a democrat.

just send 2010. a behaviorresearch center poll earlier this year found tte approval rating in arizona tt you are not providing the president of the democratic party. the approval rating is 2%. that is the worst since the early '90s. maybe u should consider the house immigration legislation and refer it as demonstrably better as an idea. by the way, i support the ideas on immigration reform.

a of course your own better nature. up next, house republicans on a careful calculated deliberation. and some of them have ben accud of wanting to take up the gang of eight bl from the senate. others say it is dead. we will talk with the house judiciary chairman bob goodlatte. he will set the record straight ♪ [ male announcer ] a car that can actually see like a human using stereoscopic cameras... ♪ ...and ev stop itself if it has to. the technology may be hard to imagine... but why you would want it isot. ♪ the 2014 e-cls, it doesn't just see the future, it is the future. it doesn't just see the future,

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yes. is this the thing you gave my husband? well, yeah, yes. the "name your price" tool. you tell us the price you want to pay, and we give you a range of options to choose from. careful, though -- that kind of power can go to your head. that explains a lot. yo, buddy! i got this. gimme one, gimme one, gimmone! the power of the "name your price" tool. only from progressive. lou: the agency is targeting some groups and the irs scandal. hous republicans say they have received 12,000 pages related to the scandal. that may sound like a lot, but congressman darrell issa says that it is actually under 200 of a percent of the 64 million

pages of documents and the irs says this is relevant to the targeting scandal. house majority leader eric cantor in what they call a bipartisan grop event highlighting the immigration experience. including a naturalization ceremony and a trip to ellis island. turning now to talk about immigration reform in the house. the chairman of the house judiciary committee who is leading the republican efforts. congressman bob goodlatte of virginia. it is good to have you with us. cement thank you for having me. good to be with you and your viewers. lou: you must talk abou breitbart.com. saying point-blank that you are receptive to the idea of the

gang of eight senate immigration plan, ich a lot people thought was dead on arrival. what is going on? >> well, it is dead on arrival. something that i do not support. i have been working all year long, as you know,o do it is a step-by-step approach to do enforcement first and then find an appropriate legal status for people whoare not legally here. it gives out legal status first and then we will go ahead and doing a verifier or a system and so on and that is what happened in 1986. we had an easy pathway to citizenship and then we had no enforcement. we still don't have the enforcement. then the sena bill gives that pathway to citizenship. a spcial pathway for people that are not lawfully here, people who have gone through the process legally for generations.

so we have lots of problems with the senate bill and we are doing a very differently in the house. the spear has made it clear at he will not take up the senate bill in the house tonight. steven apparently tis comes up because one of yourides said that he you would be willg to the conference with the senate with the presumption that they would be representing the gang of eight legislation and not conference. and senator schumer said he is delighted to be in conference with the house. we're currently he thinks he can take advantage of a less talented and gifted legislation himself. >> i am not going to comment on the senator's impression the house. but the speaker has made it clear that i think the overwhelming majority agree that we are not going to go into conference with the senate unless a bill can support this

by all. don't see anything like the house republicans are going to support. 70% of the democrats voted against the senate bill. 90% or mre of house republicans would vote against it. we are taking a very different approach to this. i think the first thing is for the house to produce their work in these hree areas and let the public, who we represent, judge that end understand the republicrepublic ans in the house have great ideas for immigration reform, to control our borders, to prevent illegal alns from entering into our country. think that they will see a very clear contrt. lou: i do believe that

absolutely you have chosen the correct path exceeding in passing immigration reform and border security legislation. i also think the republican party has pred itsel capable of absoluly screwing up opportunities with abandon. so we are also hearing that this is something that they want the gang of eight to talk about. but the senate and the president of muscle their way hrough this trade so i guess what i would ask you is would it not be more rational and effective to begin with the first bill in that ill being border security, whatever it might be, and then move towards immigration reform.

>> these rules have to be in place before any kind of legal status. >> is as overwhelming coern th would lead to another wave of immigration. >> ithows that the american people agree that a step-by-step approach we have criticized us

for many flaws. that doesn't mean we don't want to do immigration reform. it doee mean that you don't want to do anything remely like the senate bill. but the first step is to get the billout of the house and then to have a determination made as to whether it would be worthwhile having discussion over the senate if they are willing to move away from their position and may be possible. but right now it is up to the house to show the right way to enforce th borders and do the reforms that would help to grow the economy and create more american jobs. then we can talkabout what is appropriate with regard to people who are not lawfully here. in my opinion from the house is not going to do anything like the senate pathway to citizenship. lou: am i hearing you correctly this would be a conference on border security that is either five and etc.?

>> i think the first thing is that once legislation is produced, the speaker and others in our leadership wouldgauge the support in the republican conference in the house for what the next step would e. usually there is aot of discussion with the leaders in the senate and someone about whether there is any merit to having conference. so my opinion is the most important thing for us to do is pa the legislation and see what their response to that is great so far and then maybe the senate will come around to the point of view that it shouldn't be done the way they are doing it. the one congressman, thank you for being here. good luck, you have quite a challenge. lou: home prices surge as the market shows real recovery. sleeping apart. things should never come to is.

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lou: home prices ring more than 12% from a year ago lou: home prices rising more than 12% from a year ago according to acacia learn next. prices hitting lowest records in 18 years. richard, thank you for joining us. it has to be a lot of fun to see those numbers rising.

>> it sre is. lou: rising for the second week in a row. the affordability index remains as high as it is, if it continues to be that way, what do you think? >> mortgage rates are against that. the mortgage rates are component of the portability and next. mortgage tes are not going to determine the outcome of recovery. but still it is a key coconsideration. moneyis pretty cheap by any standard or definition. the affordability index is still out about it once onto number, which mes that the average family has 172% of what is qualifying. we have a long way to go for the equilibrium. lou: regulating is an important part of the business. what can they do although we are

told that these definitions are going to be more favorable. >> of that is the outcome, lending will not become more liberal, it will just become more reasonable and more practical. we hope that this is how goes in the next 45 days. lou: what you hope to hear from n bernanke? >> housing is well underway. we had an exemely strong quarter. the shortfall doesn't make any sense. that being said, you and i know that we can't predict rates. we hope to keep rtes low

through 2015. lou: rates aside, what are the greatest headwinds that you can lose a little sleepover when you contemplate the housing market. >> of a feel for what ever reason to define the mortgage stuff under dodd-frank, that's going to create a problem and i don't think there is any indication of that. i think that they a going to resolve this in short order. that will help housing and housing is on a strong recovery right no. between kenny mayne and freddie mac, forecasting a 19 to 15% volume year-over-year. that is a standard. government needs to step away for a while. let things work. and i thinkthat they have been doing that effectively for the past year.

i see no indication but based on this intent. what i heard was not the definition of grand bargain, even though i think that we can come to a grand bargain. lou: okay, start small. what do you think? >> we said at sit at a table and talk to one another. that is what the country needs. that is what housing needs. and perhaps that is what is on the agenda. lou: i join you in that hope. thank you for being here. up ext, pope francis making unprecedented remarks about gays. homosexuality. it may have a number of catholics around the world more than an easy. father jonathan morris will be here to explain and to tell us with the spark miles card from capital one,

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lou: the author of the new book has been ensnared in controversy a fox news colleague asked a straightforward question. why would any muslim want to write a book on jesus. according to matthew franck, the author is a religious historian. but apparently he doesn't have a degree of anytime and he declared himself to be quite a prominent muslim thinker in the united states as well. the author is reza aslan.

go to first things.com for the rest of the interesting story. controversy tonight foowing a trip to brazil. on copacabana beach. more than 3 million people responded to questions about the clergy'stating that if a person is gay, seeks god, and has good will, whom i to judge they should not be marginalized. joining out his father jonathan morris. our fox news religious contributor. a great guy. so great to have you. he could have said many things that would've gotten more attention. in the church and out. it seems le the national media should have done a bter job on copacabana beach. >> that is right. according to city hall of rio de

janeiro, 2.2 million people on a 4-mile stretch of beach. so there's not a sporting team, there's not a rockstar there, it is just amazing. what amazes me is that i saw this guy, now pop francis, walking through st. peter's square just a few months ago alone without anybody ing and hanging out with him. these e young people seeking spiritual truth. lou: this guy is an interesting guy. a regular kind of guy. at the same time, a man who seemto have had, if you will,

the capacity to really draw your attention to what he has to say spiritually. >> he took th name from st. francis assisi doucette preach always and when necessary use words. and in his own life, he is talkingabout it. he is living in a guesthouse inside the vatican. he is driving a ford focus. i driv one as well. this is a guy who is gathering 3.2 million people. lou: those are definitely great cars. lou: is this a blessing of

sorts? is that the direction of the church? here's my first reaction to it. >> here's the huffington post headline today. it was a breakthrough. what is that? in his a call to lov. it doesn't mean to be christian doctrine, but it's there for good. lou: this is not an endorsement

of marriage spinet absolutely not. what he did was in a loving way say that i want all of you and we should never marginalize anyone. that doesn't mean that it's necessarily right. that is the first issue at hand. the one i support gays with the same marriage rights. for whatever that matters. but at the same time, i also support the idea about why not introduce the priesthood to married folks, whether gay or straight? >> honestly the reason it is not part of catholic doctrine. the catholic religions in theory hundred has chosen to have sold the clergy. lou: thank you. you have done an amazing job of

bringing that into perspective. we will be back and have a greater discussion. thank you. thank you for being with us tonight. tonight. good night from new join us at projectluna.com tonight. good night from new it's delicious. so now we've turned her toffee into a business. my goal was to take an idea and make it happen. i'm janet long and i formed my toffee company through legalzoom. never really thought i would make money doing what i love.

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is. neil: more jobon main street. more money on wall street, man oh, man, we must be on easy street because everyone seems to be loving it. everyone that is except the folks who say they aren't seeing it, any of it, and they're mad and they're bitter and they're here an only here. welcome, everybody, i' neil cavuto. fox on top of a economy that appears to be goldilocks, just right. not too strong, notoo weak, good enough to keep the fed printing and jobs coming and unemployment rate dropping and keeping stocks humming and big business guys hoping. talk after cut taxes for them. part after grand bargain that will supposedly benefit everye